Recently read a news item that inflows from ULIPs to stock market could be around $15bn in 2009. Great news that so much money is coming in to the markets . But the sad part is so many investors have taken an uninformed decision of investing in equity through the wrong route.
A significant portion of premium money goes into paying hefty commission to insurance agents and other costs and Insurance is clubbed along with investment to hide all these costs.
I wouldn't only blame the agents. Investors also should try to do a basic analysis before they put across their hard earned money into such costly products. ULIP may definitely give returns but unfortunately not the full return that the investor deserves.
High time IRDA does something like the SEBI, by waiving the unnecessary entry loads.
Read the following articles if you need more insight on ULIPs
ULIPs are Unit Linked Insurance Policy
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